Hannover Rück (HNR1) Q3 2024 earnings summary

Executive summary

• Net income for the first nine months of 2024 rose 30.4% year-over-year to €1.82 billion, supported by strong P&C performance and a €120 million one-off tax effect.

• Full-year 2024 net income guidance was raised to around €2.3 billion, with 2025 guidance at €2.4 billion.

• Return on equity reached 22.9%, and the solvency ratio stood at 260%.

• All business segments—P&C, Life & Health, and Investments—contributed strongly to earnings.

• Leadership transition planned for March 2025, with CFO Clemens Jungsthöfel to succeed the CEO.

Financial highlights

• Group net income for Q1-3 2024 was €1.82 billion, up 30.4% year-over-year, aided by a €120 million tax effect.

• P&C reinsurance revenue grew 9.4% to €13.9 billion, with a combined ratio of 87.9%, below the 89% target.

• Life & health reinsurance revenue was stable at €5.8 billion, with EBIT at €716 million and strong new business CSM generation.

• Return on investment reached 3.1%, above the 2.8% target, with total investments at €63.0 billion.

• Shareholders’ equity increased by 10% to €11.1 billion.

Outlook and guidance

• 2024 group net income guidance raised to €2.3 billion, assuming no major capital market disruptions or large losses above €1.825 billion.

• 2025 net income expected at €2.4 billion, with P&C revenue growth over 7% and combined ratio below 88%.

• Life & health CSM growth targeted at 2%, with a reinsurance service result above €875 million.

• Return on investments expected at least 3.2% in 2025.

• Dividend strategy unchanged, with potential for special dividends if capitalisation exceeds growth needs.